Show your support by donating any amount. (Note: We are still technically a for-profit company, so your
contribution is not tax-deductible.)
PayPal Acct: 
Feedback: 
Donate to VoyForums (PayPal):
| Monday, May 18, 05:40:14am | [ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, 3, 4, 5, 6, [7], 8, 9, 10 ] |
| Subject: ERG gets price and volume queryBased on those figures, ERG theoretically has tangible assets of $261 million, or about $1 a share.They also added that ERG had lodged several tenders for fare-collection contracts in recent times in the ordinary course of business. | |
|
Author: July 17 2003==Once a tech-boom high-flyer at $4 a share |
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
Date Posted: Saturday, July 19, 03:23:11am In reply to: 's message, "Perth tender lodged 29/11/02." on Wednesday, December 25, 08:35:31pm ERG gets price and volume query July 17 2003 By Ian Porter Directors of the fare-collection technology group ERG have been queried by the Australian Stock Exchange after investor interest in the former ugly duckling took a turn for the better. Once a tech-boom high-flyer at $4 a share, ERG recently fell to less than 10¢ after delays and deferrals by many of its customers caused earnings to slip further into the future. Cities around the world are installing its ticketing and smartcard technology in public transport systems, but recurring cash flow is only now building up. The absence of cash flow meant the company almost ran out of money and had to negotiate a capital restructuring as the conversion date for $250 million of notes drew near. advertisement advertisement As the company negotiated its way through the restructuring, which involved issuing 1.7 billion new shares, the share price went as low as 7¢ in June, valuing ERG at just $19.8 million. The restructuring ended with a 10-into-one share consolidation, reducing the issued capital to 267 million shares and lifting the share price to 81¢ when trading resumed on July 1. Directors said the reconstruction would cause the net value of ERG to rise from $29 million, based on December 2002 figures, to $311 million, although that included a now-abandoned plan for a $50 million rights issue. Based on those figures, ERG theoretically has tangible assets of $261 million, or about $1 a share. That takes no account of the value of contract-winning intellectual property, which auditors insisted be subtracted from the balance sheet last year. Since trading resumed, the shares have risen steadily, adding 43 per cent to close at $1.16 last night after gaining 7¢ yesterday alone. A hefty 8.1 million shares changed hands yesterday, the third time since July 1 that the trade exceeded 6 million shares. Average daily volume since the start of the year has been less than 1.5 million. ERG directors replied to the ASX that they knew no reason for the rise in price and volume, but they pointed out that the capital restructuring was complete. They also added that ERG had lodged several tenders for fare-collection contracts in recent times in the ordinary course of business. The report owns ERG shares. [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| July 18th"What it's really going to come down to is whether they can make money or not, and so far they haven't proven to the market that they can," he said. | July 18th--Hartleys analyst Steve Piotrowski | Saturday, July 19, 03:29:24am |